VAT returned to foreign nationals up by 57% in January-July

The value-added tax (VAT) returned to foreign countries’ citizens who visited Armenia between January and July increased by 57% against the same period of 2016.

The tax-free refunds in the reporting period amounted to 277 million Armenian Drams (AMD 478 = US $1), which is AMD 100 million more compared to the first seven months of last year, Arman Mirzoyan, the head of a tax return inspection and monitoring department, told journalists on Friday. He attributed the increase to a government decision to lower the minimum sum exempting foreigners from VAT duties from AMD 100,000 to AMD 50,000.

“It may also be due to the increase in incoming tourism,” he added.

Mirzoyan noted that a total of AMD 1.245 million has been returned to foreign nationals since the system’s launch in 2014.

He added that the procedure doesn’t apply to the export of specific goods.

“Those products include foods, tobacco, medicines, cultural values, transportation means or their spare parts. The exports should be carried out within 90 days after the return,” the official explained.